With the rise of crypto trading, a lot of exchanges have opened their doors for traders. Coinbase is one of them. But what makes an exchange platform a decent choice? Read on to learn everything this platform may offer to you.
Pros & cons
Pros
- High security with various features of safety
- User-friendly interface
- Constant online support
- Great range of payment options and fiat currencies
- High limits & liquidity
Cons
- Costs above average
- Fewer crypto options
Company overview
Year Founded June 2012 Official Website coinbase.com Cryptocurrencies Available Bitcoin, Litecoin, Ethereum, DASH, Tezos, and others Customer Support help.coinbase.comCoinbase was established by Brian Armstrong and Fred Ehrsam when the concept of trading and exchange of cryptocurrencies sounded like a crazy idea. Yet, moving smoothly and patiently, this cryptocurrency platform has undergone many critical changes enabling it to become one of the fastest, safest, and most widespread.
Firstly, it functioned in the US only, and quite recently, it’s started to trespass the borders of countries it may support. In total, the Coinbase exchange platform supports about 42 countries. What’s more, unlike many platforms online, this one supports fiat-based currencies as well. So, you’re not limited to crypto-to-crypto exchange.
Currencies & payment methods
On the Coinbase exchange platform, you purchase the major cryptocurrencies. Upon your purchase of any available cryptocurrency, you have an option to store them on exchange support wallets to enable further transactions. In total, you have an access to 15 cryptocurrencies online, and you may discover the following:
- Bitcoin
- Litecoin
- EOS
- Bitcoin Cash
- Ethereum
- Tezos
- Cosmos
- DASH
- Chainlink
Also, don’t forget that the Coinbase exchange platform supports more than 50 fiat currencies you may use for the exchange. What’s more, you should note that Coinbase doesn’t support credit cards unless you’re from Australia. There’s no option of Visa, Discover, American Express, etc.
Methods of transaction payment Available in the following regions/countries Wire Transfer Only in the US ACH Transfer Only in the US Debit Card The US, European Countries, Canada, UK, Australia, and Singapore SEPA Transfer European countries Crypto Deposit WorldwideLimits & liquidity
One of the greatest advantages of the Coinbase is its limits, which may vary depending on the users’ jurisdiction and level. Like any platform, this one requires users to pass through verification processes. Depending on the information provided, your limit will be set accordingly.
For example, if you’re from the US and a fully verified member online, your limit will be a maximum of $50K per day. If you’re from Europe, your limit will be €30K. Also, don’t forget about the payment method you’re using as well. So, look at the table for more information.
Methods of payment Limit Withdrawal time Wire Transfer No limit Instantly Debit Card Max $7.5K per week Instantly ACH Transfer Max $25K per day Up to 5 business daysCoinbase fees
In terms of fees, Coinbase is above average. However, given the high-security standards of the platform, it’s worth a try. The fees are explained in detail below.
Cryptocurrency conversions
There’s no charge in fiat currency for crypto-to-crypto exchanges. Yet, there’s a market spread of 1% to be applied to your exchange transaction. Much depends on the market fluctuations of the crypto coins.
Deposit & withdrawal fees and times
First of all, both deposit and withdrawal fees will vary depending on the country of residence and the payment method. PayPal option is available for US, European, Australian, Canadian, and UK citizens when withdrawing.
Methods of payment Fees of depositing Time of deposits Fees of withdrawal Time of withdrawal Wire Transfer 1.49%+$10 Up to 7 days $25 Up to 2 days ACH Transfer 1.49% Up to 7 days No charge Up to 5 days Debit Card 3.99% Instantly 2% Up to 1 day SEPA Transfer 1.49% Up to 3 days 2% Up to 1 day Cryptocurrency Varies Varies Varies Up to 3 days PayPal NA NA No charge InstantlyCoinbase security
Before delving into the details on how this platform provides security, the most important aspect is the insurance provided by the site. FDIC protects the assets, and this means deposit protection is up to $250,000 for each account.
The privilege of being a member of the Coinbase exchange platform is its security. It’s one of the most trusted digital currency exchanges online. So, how does it succeed in providing such a secure atmosphere?
Cold storage
As a user, you’ll have to provide crucial information to pass verification. Yet, the other important info is your transaction on the platform. So, to ensure total safety, there’s one feature making this platform more reliable — cold storage. Thanks to this option, Coinbase ensures safety from malevolent activities online along with hacking attempts.
What’s cold storage? It’s a physical copy where digital assets are stored to avoid its vulnerability to be accessed from the hacking or other attacks. It ensures that your info and funds are stored in a safe place.
Client data & verification processes
It’s another way of backing up detailed info of the users. All that’s kept encrypted is stored offline as well. Also, such data is backed up on a special USB you have. So, all information you provide on this platform is safe and kept away from others.
Don’t forget about the 2-step verification process. When logging in, you’ll have to verify your account through the message sent to your phone. Unlike many online exchange platforms, such verification is a must for everyone.
Client vault and institutional security
There’s an option of a 48-hour vault wallet available for Coinbase members. It comes as an additional and optional feature. Even if your account is compromised, you’ll have in total 48 hours to call off all unauthorized activities regarding your account. This will ensure security for your assets.
Institutional security of the Coinbase exchange platform encompasses background checks of the staff operating on the platform, hard drives encrypted for security purposes, and includes the most up-to-date technology to guarantee safety. Thanks to its well-known institutional protection, the Coinbase offers its custodian services to other organizations as well.
How to create an account
To be active and start your transactions on the site, you need to pass through the registration process. First, you need to go on the website of Coinbase and find the option for signing up. By clicking on the ‘Sign Up’ link, you’ll start registering. On the first page, you’ll have to fill in the following:
- First Name
- Last Name
- Password
- Choose your state of residence or other location
- Pass through CAPTCHA
- Certify you’re above 18 years old
Just click on the ‘Create Account’ link, and then continue. So now, you need to visit your email and check your verification link. Once you’ve verified your email, choose your country and enter your phone number. You’ll be sent a code to your phone.
This is how you sign up, but it’s not all. Now, you’re to move on with verification of your identity. It’s required if you’re planning to have transactions and exchanges with cryptocurrencies. Don’t forget that no activity is allowed unless you pass through this ID verification.
Verifying ID is quite a simple process. You can do it either by providing your Driver’s License or Photo ID. You may do it via mobile camera, file upload, or webcam. Once all is done, your verification is complete. However, the platform offers 3 levels of verification which will affect your limits.
- Lvl.1: verify your phone number and invest max $9.5K.
- Lvl.2: verify personal info like full name, telephone number, and place of residence, and invest without any limits, make wire transfers, and store USD in your account.
- Lvl.3: verify ID and send & receive digital currencies.
Also, once you sign up, you may activate 2FA (2-factor authentication.) It’s not mandatory, yet very advisable. This measure is taken to prevent your account from being hacked. Go to Settings of your account, and choose the Security tab. There, you’ll see the ‘Enable Authenticator’ button. You press it and after that, you’ll get an SMS to verify your choice.
Coinbase alternatives
Crypto traders may opt for other platforms like eToro or Kraken. eToro offers not only crypto exchange services but also other valuable financial assistance. What’s more, the platform focuses on social trading, and you may learn a lot from more professional investors. On the other hand, Kraken is great when it comes to fees and options of cryptos. Much is similar to Coinbase, yet the latter’s customer service is more advanced and helpful.
Conclusion
Despite being a bit expensive, the Coinbase platform ensures you get the full benefit of this online exchange. Here, you don’t only get a chance to buy and sell your cryptocurrencies through crypto coins but with fiat currencies as well. Also, it gives very appealing limits and high liquidity making it an excellent option to use. If you need a reliable exchange platform to safeguard your assets, Coinbase will definitely suit you. Be among the luckiest to check its quality and benefits!
